New Delhi, June 2
Union Heavy Industries Minister H D Kumaraswamy said on Monday that Mercedes Benz, Skoda-Volkswagen (VW), Hyundai, and Kia have shown keen interest in manufacturing their electric vehicles (EVs) in India.
The minister further said that the application window for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) will open soon.
On Elon Musk-run Tesla, the Union Minister said: "We are not actually expecting (manufacturing) from them as they are only to start showrooms. They are not interested in manufacturing in India."
The new EV policy has allowed several concessions for companies that will invest in India and set up manufacturing units.
The Centre has now notified guidelines to enable fresh investments from global manufacturers in the electric cars segment and promote India as a global manufacturing hub for e-vehicles.
The approved applicants will be allowed to import completely built-in units (CBUs) of electric four-wheelers with a minimum CIF (cost insurance and freight value) of $35,000 at a reduced customs duty of 15 per cent for a period of 5 years from the date that the application is approved.
Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme. The maximum number of e-4Ws allowed to be imported at the reduced duty rate will be capped at 8,000 units per year. The carryover of unutilised annual import limits would be permitted.
According to the notification, the maximum number of EVs to be imported under this scheme will be such that the maximum duty foregone per applicant will be limited to Rs 6,484 crore, or the committed investment of the applicant of a minimum of Rs 4,150 crore, whichever is lower.
Meanwhile, the upcoming higher steel tariffs by US President Donald Trump will have a "minor" impact on India as the country does not export big to the US, Kumaraswamy said.
Trump last week announced to double import tariffs on steel and aluminium from 25 per cent to 50 per cent, starting June 4.
Speaking to reporters in the national capital, Kumaraswamy said: "Minor impact will be there as we are not exporting (to the US) in a big way."
— IANS
Reader Comments
Great move by the government! This will create jobs and boost Make in India. But why give concessions to foreign companies when we have homegrown EV makers like Tata and Mahindra? We should support our own first. 🚗
Finally some good news for EV adoption! The reduced import duty will make these cars more affordable. Hope charging infrastructure improves too. Bangalore roads are already seeing more EVs than petrol cars in some areas.
Tesla not manufacturing here is disappointing but not surprising. Their cars are too expensive for Indian market anyway. Hyundai and Kia will do better with affordable options. Waiting to see what they launch!
Good policy but implementation is key. Hope these companies actually transfer technology and don't just assemble parts here. We need to become truly 'Atmanirbhar' in EV manufacturing, not just screwdriver jobs.
₹4150 crore investment is no joke! This shows global confidence in India's EV market. But government must ensure electricity supply keeps up with demand. Many places still face power cuts - how will we charge all these cars?
Exciting times for Indian auto sector! But hope these companies will train our workforce properly. We have talented engineers who can lead EV innovation, not just work on assembly lines. Skill development should be part of the deal.
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